College Funding

An early start on saving for education puts the power of time and tax-deferred compounding to work for you. Mona Lisa Insurance and Financial Services, Inc. offers tax-advantaged education investment products including state-sponsored college savings plans and education savings accounts. The money in these savings programs can pay for qualified education costs, including tuition and fees, room and board, and supplies and books. In most cases, you can contribute as little or as much as you want and choose how your money is invested. I can assist you in developing a savings strategy to help you achieve your education funding goals.

Coverdell Education Savings Accounts*
Formerly called the Education IRA, this tax-advantaged educational savings account is held in a child’s name and allows investment choices such as stocks, bonds, mutual funds and certificates of deposit (CDs). The earnings on savings accumulate tax free, with no taxes upon withdrawal when the money is used for qualified elementary school (K-12) and higher education expenses. Contributions are limited to $2,000 per year per beneficiary. Once the beneficiary turns 18 years of age, contributions can no longer be made to the account.

529 College Savings Plans*
These state-sponsored and administered programs, named after Section 529 of the Internal Revenue Code, help parents and other relatives save and pay for future higher education costs for children. Every state offers a 529 plan available to residents and nonresidents alike. Earnings and distributions are federally tax free if used for qualified higher education expenses.